Report: Google Now Snares One In Five Of Every Ad Dollars Spent (& It’s One In 10 For Facebook)
A new study has revealed just how much the tech giants Google, Facebook, Amazon, Twitter and Snapchat now snare in ad revenues alone.
The study, titled State Of Digital Media Report, was based on each company’s recent earnings reports and deduced that there’s not one “digital ad market” anymore but rather two media ecosystems – leaders and laggards.
“Google, Facebook, Amazon, Verizon, Microsoft, Twitter and Snap combined have 80 per cent of the market and their market is growing 20 per cent. The laggards have the rest of the market, which will shrink 11 per cent,” the report revealed.
Here are the top highlights from the top five players.
• $US32.6 billion in advertising revenue in Q4 2018 and a $US130 billion annual run-rate now, growing 20 per cent year over year. This means one in five total advertising dollars globally goes to Google.
• Continued focus on its O&O (owned and operated) business (Search, YouTube, Mail, Maps, Assistant, etc.), citing an increase in margin thanks to “favourablele revenue mix shift from Network to Sites”. O&O makes up 83 per cent of Google’s ad revenue.
* O&O site revenue grew 23 per cent year over year where network revenue grew only 12 per cent. Their margins continue to increase. Volume of ads (measured as paid clicks) on Google properties grew 66 per cent wherthe e volume on the network sites (measured as ad impressions) grew only seven per cent.
• With their revenue run-rate at $US68 billion, approximately one in 10 total ad dollars goes to Facebook. It saw a 30 per cent growth rate, which is double that of the digital ad market.
• Seven million advertisers and 90 million small businesses use their services (most of them for free). 50% plan to increase spend on Facebook and 73 per cent plan to increase spend on Instagram.
• 2.7 billion people use Facebook’s services and two billion people use them daily. Users are growing nine per cent year-over-year. They have 317 million fake or duplicate accounts.
• 83 times is how often the term “Stories” was referenced on their earnings call. “Privacy”, “Safety” and “Security” combined was mentioned 47 times.
Amazon
• $3.4 billion in advertising revenue in Q4 2018 and a $US13.5 billion annual run rate, growing 100 per cent year over year (the total digital market is growing 15 per cent).
• Not much else to report as Amazon is not talking about their ad business. The term advertising does not appear once in their investor presentation and a mere 19 times in their SEC 10-K filing (most of which refers to their own marketing programs versus advertising as a revenue source).
• $909 million in revenue last quarter, a 24 per cent year-over-year increase. Video is half of their advertising and the driving force behind revenue growth.
• Doubling down on O&O monetization, they introduced a new metric: monetizable Daily Active Users (mDAU) to get away from chasing scale that is meaningless to advertisers. Their non O&O revenue was down 18 per cent.
* The US market is 21 per cent of their user base but 57 per cent of their revenue, they have a big revenue growth opportunity internationally.
Snapchat
• $US390 million in revenue in Q4 2018 and a 43 per cent growth rate (three times that of the digital market). Annual revenue hitting $US1.2 billion with a high 68 per cent cost of revenue though.
• The promise of cheap ads: “We continue to deliver incredibly competitive CPMs and low cost per outcomes, resulting in highly performant campaigns.”
• With glowing public references to ESPN and NBC, they are clearly trying to cosy up with premium content as a way to balance the “other content” on the platform. Some 30 per cent more people are watching Publisher Stories and Shows daily compared to last year.
Latest News
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Not provided is advice on using chopsticks and not spilling ramen down your shirt.
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
Poh! Jamie! Adriano! Paramount ANZ reveals its tasty plans for this year’s MasterChef
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get One” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.